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Macy’s to Lay Off Over 2K Workers, Close Five Stores

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(Image Courtesy: MGN Online)

NEW YORK (WGGB/AP) — Macy’s has announced that it will close some stores and lay off over 2,000 workers in what they are calling “focused cost reductions.”

The announcement comes on the heels of a strong holiday shopping season for the department store chain.

In a statement released Wednesday afternoon, the company says that the changes, which also include organization changes and cost reductions, will save them about $100 million a year, beginning in 2014.

“The actions being announced today reinforce our focus on continuous improvement in our M.O.M. strategies (My Macy’s localization, Omnichannel integration and Magic Selling customer engagement) and will help us to maximize the impact of the exceptional talent we enjoy at every level of our organization,” says Terry Lundgren, Macy’s chairman, president and CEO.

Macy’s adds that about 2,500 employees will be laid off as a result of the organzation changes and will be eligible for severance packages.

The Cincinnati-based company plans to close five stores, in Arizona, Kansas, Missouri, New York, and Utah, and open eight others, leaving it with 844 stores nationwide once the changes are complete.

The news sent its shares up 5.5 percent in after-hours trading.

Information from the Associated Press was used in this report.

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  • tmk823

    Hmmmm wonder if it is that wonderful health care law ???

  • garyf629

    It shows how much you read. Macy’s is closing 5 under performing stores, and openning 8 new ones, that’s a total gain of 3 stores.

    The 2500 jobs are because they are closing stores, and not able to offer jobs in the stores they are opening because they are in different areas.

    Since this does not affect anyone in our area, it makes you wonder why Channel 40 News choose to make the headline negitive instead of a positive. The headline could have read “Macy’s opening 3 stores, and hiring 500 new employees”

    SHAME ON YOU CHANNEL 40!